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Corporate Executive Coaching - (Cavet Emptor - Buyer Beware)
Author: Freda Turner

Corporate Executive CoachingCaveat Emptor - Buyer Beware
When a new Human Resources Director at a Fortune 500 firm realized the organization had spent more than $1 million annually on executive coaching, she decided to take stock of the return on that substantial investment. The participants, she discovered, boasted about the process. Their bosses, however, told a very different story. The bosses made comments such as, "I know Jason has been pleased with the process. However, I'm not sure I have seen much change in what he does nor do I see how it is influencing our business goals or bottom line. HR Focus Journal, in a February 1999 article entitled "Strategic Coaching" reported, "A survey commissioned by Personnel Decisions International (PDI) says that fewer than 10 percent of organizations evaluate the business impact of coaching." In our fast paced society, it seems that every organization is looking for a quick fix and a shortcut. Wishful thinking trumps reason. Anecdotes substitute for solid proof. Nevertheless, not all coaches have been sufficiently trained.
Any Organization/Person Can Call Themselves An Executive Coach

Currently, there are no organizations or regulations to monitor the ethics or credentials of executive coaches. Any organization, or even your mother, dog or favorite barber/hairdresser, can legally market skills in coaching. Executive coaching is an emerging new profession. Just as teachers once had no specific, required credentials, coaching fits that profile at this time. Unlike industrial psychologists or coaches who are third party trained in assessments and human behavior modification techniques, there are low to middle managers with a garden variety, past life from corporate America, selling themselves as a skilled executive coach. Some organizations' pay thousands of dollars to such coaches - often more costly than psychologists or trained coaches schooled in behavior modification. Ultimately, when organizations hire an executive coach, they should ensure the coaching investment delivers measurable, improved business results.

Paying an Executive Coach To Help Improve Business Results or a "Rent-A- Friend?

While not all executive coaches are just out for your money, a coaching scam occurred last year in Orlando, FL at a professional conference. A nationally known firm held a drawing from collected business cards, promising the lucky, winning organization a "free" three month executive coaching program. They rigged the drawing so that a specific, targeted organization "won," since they believed this organization to be an income source of future coaching business. They informed the "lucky winning company" that the coaching was best done "at their site." The individual who conducted the "free" coaching had 10 years of sales experience. His true goal was to get inside the organization, identify the decision makers and sell executive coaching business to other organizational members. The coaching credentials of this person consisted of approximately 3 days of training relating to coaching, assessments and proposal development What this "Executive Coach" did have was, a great personality, a good track record of sales, and provided nothing more than feedback from a $16.25 assessment instrument, a listening ear, and knowledge on how to advance future sales in the targeted organization.

Coaching Costs

While freelance coaches often charge anywhere from $100.00-$200.00 dollars an hour to organization's that charge several thousand dollars (sometimes up to 10% to 20% of the individual's annual salary), a skilled coach can positively impact the profitability and productivity of an organization. Therefore, before contracting with an organization or individual claiming coaching skills, investigate the coach's professional coaching history relative to observable, measurable business outcomes and improvements. Ask the coach for 5 or 6 references of previous organizational clients. Then call the CEO, COO of that organization and specifically ask if the cost of coaching produced a satisfactory ROI toward improving business. If the coach declines to release the names of previous organizational clients, RUN. Your organization is willing to obligate several thousand dollars as an investment in coaching, and the stockholders expect their dollars to be invested wisely. Conducting a price and services provided comparison is also worthwhile. Often, trained coaches or Industrial Psychologists have access to a wealth of tools and resources. Additionally, some coaches are so confident in their abilities, they are willing to be paid in stock options. Organizations that produce "home grown" coaches often have minimum training and assessment instruments that any community college provides. The "Kirkpatrick Model" is still the most widely used approach for evaluating training ROI in industry, business, government, and academic institutions and may be helpful in determining if your coaching dollars are a wise investment. Simply defined, stage 4 of this model evaluates the training/coaching impact on business goals. For example, are there measurable improvements such as increased sales, increased suggestions from team members, improvements in morale and attitudes gathered from climate survey data, less absenteeism and employee turnover, etc. A 35-page report from the coach means nothing to an organization if the coaching process did not produce improved business results. So, to preclude "rent-a-friend" coaching relationships, ensure the coach has the skills and training to improve or impact the organization's standard of performance. Contract for specific business outcomes and ensure objectives to improve business results are in writing. At the minimum, a coach should have earned some professional certification in a coach-specific, third party training program in a college or university or at organizations like Coach U, CCUI, CoachWorks. The International Coaching Federation is another reputable organization that is trying to make coaching an ethical and credentialed profession to protect the public from future corporate coaching scams. In the mean time: Cavet Emptor (buyer beware). Verify credentials and past measurable business outcomes of the coach. One truth still holds: what one measures, is what one gets. What other measurable, business outcome has the coach produced?

TIPS

Review the ROI on measurable business outcomes that coaching has produced. Organizations and individuals can legally market coaching skills. Verify professional qualifications. Inquire how coaching has provided improved business results by calling several previous organizational clients.

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Dr. F. J. Turner, (MS in HR) is a freelance writer, conducts research into human resources issues, best workforce development & business practices. She has a weekly article in the Jacksonville Business Journal. She may be contacted at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and is available for club presentations.

Freda Turner
University of Phoenix
Jacksonville, Florida Campus
email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it